When applying for a college abroad, do you consider the college fees? Study abroad education loans will assist you in resolving your most pressing concern, namely, paying your college tuition.
According to a study, the expense of education increases by 15% each year, making education more costly each year and making it more difficult for students to attend their dream college. As a result, students also dig into their parents' personal investments, such as fixed deposits and mutual funds. However, many people do not have this opportunity, and an education loan is a blessing in their lives. Let us learn about the advantages of education loans and weigh the advantages and disadvantages.
Keep your money secure.
Studying abroad will put a strain on your parent's finances. Taking out a loan will assist your parents in keeping their savings secure and putting them to good use after they retire. It will also assist you in ensuring that you research and you must repay the loan after the moratorium period expires. The money saved may be used for other unplanned expenses, such as emergency medical treatment.
Obtain Tax Advantages
One of the most advantageous aspects of taking out an education loan is that it provides many tax advantages. Students who take a foreign education loan from a gazetted financial institution are liable for deductions on the interest charged on the scholar education loan under Section 80E of the Indian Income Tax Act. This tax advantage allows parents to save a significant amount of money, making study abroad loans a viable option.
Use the moratorium period to your advantage
Repayment does not begin until the moratorium period has expired. It may be six months or even a year after the curriculum is completed. This is advantageous since the student will concentrate on his or her studies rather than worrying about the payment of fees. For a study abroad education loan, the income you will earn after completing the course is taken into account.
Visa approval is simple
When applying for a visa, the authorities check to see if there is a consistent source of income and if the funding source is safe. Since the funding is guaranteed, study abroad loans make it easier for students to get their visas approved. If the student does not receive an education loan, he or she must keep the entire amount required for the program in his or her parent's account for at least a year. This is not an easy task for anyone since the funds are frozen for more than a year. As a result, an education loan is a viable choice for the visa.
There are just a couple of the benefits of taking out an education loan. It can also be useful in other situations. Many countries, including Canada, Australia, and Germany, have made it obligatory for students to provide proof of funds for the length of their stay, or at least one year. Extra costs are eliminated for an education loan because the bank just disburses them. Don't hesitate to apply for an Education Loan on EmpowerYouth.com.